Relations between the two clubs turned hostile when it was revealed that the newly combined entity would be named the “Greater Canada Club”.
Keir Sullivan, Contributor
River Ewing, Contributor
The merger talks originated when Canadian Club leadership began exploring potential avenues to grow its membership base. Organic growth of membership had flatlined and with increasing pressure from influential Canadian alumni to expand, leadership focused on M&A.
After talks with the B-School Blades fell through, attention shifted to a competing regional club—the Texas Club. Canadian Club leadership vocalized its admiration for Texas BBQ and highlighted the state’s legendary hospitality as offering a key strategic fit with its Canadian sensibilities.
However, neutral observers suggest that the real intent underlying the deal is the Texas Club’s strong balance sheet and AAA rating, which has been the result of running a decades-long budget surplus. The Canadian Club, insiders say, needed a way to unwind its massive deficit spending after placing the largest swag order in HBS student club history. An anonymous inside source claims “for every dollar in membership fees we collected, we spent sixteen in Roots flannels”[1].
In the final hour of negotiations, Canadian Club leadership pulled a fast one and referenced a club bylaw dating back to the school’s founding mandating that the larger regional club by landmass must acquire the smaller club. Under the premise that Texas was “obviously” larger, Texas Club leaders quickly signed the deal and were consequently shocked to find their roles were immediately made redundant.
With a signed deal on the table, attention quickly shifted to the Student Clubs team, who would have to provide a ruling on this landmark takeover. Deflecting, Student Clubs leadership insisted a decision of this magnitude must be escalated directly to the Dean’s office.
While the Dean could not be reached for comment directly, sources familiar with the Dean’s thinking indicate he will not veto the deal because “HBS is co-created” and to “let bylaws be bylaws”. Regional club leaders were reportedly incensed and staged a sit-in protest of the popular “Dean’s Breakfast” event, pleading to the Dean to block this merger as a grossly anti-competitive move.
Unperturbed by the controversy, Greater Canadian Club leadership is focusing its attention on continuing its roll-up strategy, hoping to acquire the Australian & New Zealand Club by year end. In an exclusive interview with The Harbus, Greater Canada Club leaders stated, “We have a deep bench of Canadian management talent and the playbook to drive outstanding returns for our Canadian shareholders.”
[1] The red and black Roots flannel is widely considered a Canadian fashion staple
Keir Sullivan (MBA ’23) was raised in St John’s, Newfoundland & Labrador and studied Life Science and Commerce at Queen’s University. Prior to HBS, Keir worked at J&J.
River Ewing (MBA ’23) grew up on a farm outside of Toronto, Ontario and studied Philosophy and Business Administration at the University of Western Ontario. Prior to HBS, River worked at a family office.
Comments